sir
we are doing textbook business and it's a nill rate tax item. Recently I heard from my friends that a company expenses is not exceeding Rs5000 per day. and if the amount exceed above the Rs 5000 there liable to pay reverse charge. so how accounting such expenses and how to take these amount for reverse charges purpose.
. for eg. 02/08/17 travelling expenses Rs 3000.
02/08/17 office expenses Rs.5000
02/08/17 printing and stationery Rs 7000.
03/08/17 travelling expenses Rs.3000
04/08/17 printing and stationery Rs 2000.
my question is , which amount should I take for calculation of reverse charge ?
sorry sir...my English is not good.
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how to calculate the reverse charge?
Replies (9)
daily expenses limit is 5000 if your expenses are not within limit RCM will apply
need any further assistance call @ 9838766110
need any further assistance call @ 9838766110
Exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day.
Need any further assistance call @ 9838766110
Need any further assistance call @ 9838766110
The One day Rs. 5000 limit is not on over all expenses. Your inwards from URD and Its total values less than 5000 then no need RCM...
So, as per rule your 3rd and 4th expenses not under RCM.
2nd day expenses ll be fall under RCM head. But, You can seggregate any RD purchases in above said value. You can less that expenses
Also, My english is very poor. But, Dont worry ask your Doubts in CCI portal the Experts ll reply
thnksss.. @ Raja pm sir
Under Reverse charge mechanism,
Reverse charge wont be applicable if the total value of supplies from unregistered dealers in a day is less than Rs. 5000 otherwise you have to pay reverse charge on whole value suppose you take supply of Rs. 5001 from all unregistered dealers then reverse charge would be applicable on whole amount i.e. Rs. 5001 not just the amount exceeding Rs. 5000
@ Mr Mohit is absolutely correct
| Originally posted by : RAJA P M | ||
 |
The One day Rs. 5000 limit is not on over all expenses. Your inwards from URD and Its total values less than 5000 then no need RCM... So, as per rule your 3rd and 4th expenses not under RCM. 2nd day expenses ll be fall under RCM head. But, You can seggregate any RD purchases in above said value. You can less that expenses Also, My english is very poor. But, Dont worry ask your Doubts in CCI portal the Experts ll reply |
 |
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